Virgin Money, a financial institution based out of Britain, South Africa and Australia, has made the decision to no longer accept credit cards for purchases of cryptocurrency. This information was recently made public by the BBC.
Following in the Footsteps of Other Banks
A spokesperson for Virgin Money is the one who made the recent announcement about the change. According to the BBC’s publication, Virgin Money has indicated that because of their new methods of operation, its customers will no longer be able to make cryptocurrency purchases using a credit card. This is in conjunction with a wave of several other banks who have established a similar ban.
In fact, earlier this year, several American and British banking groups have made the same announcement to their customers. This includes financial superstars such as J. Morgan Chase, the Bank of America and Citigroup. However, it should be noted that these companies still allow their clients to use their debit cards to make transactions with cryptocurrencies.
These companies have also reassured that precautions are being taken to run credit reports before lending out any credit. This allows them, among other things, to prevent any transactions that seem suspicious.
The announcements reflect concerns that are held by both parties about cryptocurrencies. For example, in China, where they unsuccessfully banned access to cryptocurrency trading platforms within their borders, eventually had to deploy a national firewall against investors who were trying to visit platforms that were hosted off Chinese territory.
Could Bitcoin’s Loss of Value Have Caused the Decision?
To this day, Bitcoin remains the reference point for all other cryptocurrencies. That said, a drop in Bitcoin’s value often has a snowball effect on the value of the entire cryptocurrency system. Which is what happened recently when Bitcoin’s value tumbled to below to $7,000 mark. During its crash, it also had a negative effect on other altcoins such as Ethereum, Litecoin, Dash, Bitcoin Cash and many more.
This is the first time in 2018 that Bitcoin’s value has dropped to such a low value in such a short period of time. It has also been noted that most stock indexes such as the Dow Jones and the S&P 500, which accept the use of Bitcoin, have also found themselves in a similar situation.